Comments on: Teen money management mistakes

By: WealthiHer Blog Network » Blog Archive » Carnival of Personal Finance at BankerGirl

Tue, 16 Sep 2008 15:28:45 +0000

[...] Little By Little – Teen Money Management Mistakes. Sounds like a lot of adults I [...]

By: Weekly Roundup: Laboring All Day Edition at Clever Dude Personal Finance & Money

Mon, 01 Sep 2008 19:46:57 +0000

[...] Gather Little by Little identifies teen money management mistakes. [...]

By: rtc

rtc — Thu, 28 Aug 2008 01:14:11 +0000

Thanks for the post. I am encouraging my son to “plan his spending” from his summer job, but I’m not sure that it is sinking in! He knows that he has to buy his own gas for the rest of the year, but he hasn’t changed his driving habits. Maybe reality will be a better teacher!

By: ChristianPF

ChristianPF — Wed, 27 Aug 2008 16:54:39 +0000

GLBL,
I started laughing when I saw that you mentioned Members only jackets, I just paid for one a couple of hours ago that I won on ebay – for an 80’s party

But, I completely agree about not chasing brand names – I was obsessed when I was a teen, to the point that I only wore polo clothes, the bummer was I only had 2 shirts!! It is hard to not look like a fool when you wear the same 2 shirts over and over again

By: Alisa

Alisa — Wed, 27 Aug 2008 16:45:51 +0000

I think not fully understanding the time value of money and the power of compound interest should rank high on the list of teen money management mistakes.

Here is a great tool that graphically shows the power of compound interest.

http://www.bankrate.com/brm/news/sav/2006savmg/savings-calc.asp

I think that the concept of compound interest should be part of every child’s curriculum in elementary school on up through college. This way every child has the opportunity to benefit from the time that he or she has to invest their money wisely.

I also think that this is a cool budget tool for kids.

http://www.bankrate.com/brm/calculators/personalfinance/student_budget_calculator.asp

I also saw a documentary on our nation’s debt crisis and I summarized it here: http://ourstockmarketjourney.blogspot.com

This may also help kids to see what could happen if and when they allow spending to get out of control.

Be well.

By: Monroe on a budget

Monroe on a budget — Wed, 27 Aug 2008 16:22:34 +0000

Cell phones are another area where the kids rack up expenses without thinking.

How many times do us parents have to say “call your friends during the freebie minutes not during business hours,” “If you’re going to text that much, buy a monthly plan for Pete’s sake,” …

By: Kristen

Kristen — Wed, 27 Aug 2008 13:40:25 +0000

Good post! I think one of the most important things for teenagers, especially those choosing a college, is to understand what student loans cost. I really didn’t have a good concept of that when I picked my college or my career path. What a shock upon graduation when I discovered that my student loan bill was almost one entire paycheck a month at my new, entry-level job!

Don’t get me wrong, I don’t regret my choice of schools because I got a good education and made wonderful friends, but I wish I had been more prepared for what was going to come after. I wish I had saved throughout high school and college so I had a better cushion upon graduation. By the way, I’m in my 30’s and I still have a long way to go to pay off the student loans …

By: James@capitalcouplesfinance.com

James@capitalcouplesfinance.com — Wed, 27 Aug 2008 12:41:28 +0000

I really enjoyed this post because you often read about how teens aren’t educated about money and make poor spending decisions, but you describe exactly what that means.

You’re right, kids are absolutely divorced from the day-to-day costs of most things simply because they don’t pay for it. Good job sitting down with him and educating him a little.

As for tips…just set a good example and talk to him about money. If you’ve had or are having financial problems, explain to him why and tell him what you could have done to avoid it.